SAP to put brakes on India expansion

SAP to put brakes on India expansion

By agencies   |   Tuesday, 31 January 2006, 08:00 Hrs
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BERLIN: Europe's leading software company, SAP, plans to put the brakes on expansion in India in order to focus more on China and Eastern Europe, the company's CEO, Henning Kagermann said.

He said, “We have undertaken to only employ a set number of further (people) there and then to start looking at other locations.”

SAP had announced in 2003 that it planned to expand operations in India to make the country its second biggest software development center in the world. At present the country has 3,000 SAP employees, after the U.S. with 6,000 and Germany with 14,000.

SAP, the world's leading company for business applications software, plans to expand operations in China, where it currently has 900 employees, and in Eastern Europe.

Lower fluctuation rates for employees in China and Eastern Europe were one reason for the decision, said Kagermann, adding that better infrastructure was an additional motive for the move.

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